Recipe: Pay-per-Click Advertising

Online pay-per-click ads allow you to focus the reach of your advertising and pay only for the response you get. With these text or graphic ads, you pay a fee every time someone clicks on the ad to visit your website. Sometimes these ads appear in a fixed location, such as the top of a designated page on a website. Other pay-per-click ads are context-sensitive (e.g., Google AdWords). This means they are displayed on search engine pages and a wide variety of websites where keywords related to your service are in use.

For example, a security management consulting firm could purchase a pay-per-click ad for the keyword phrase “security consultant” and agree to pay a maximum of $1.50 every time a visitor clicked through ...

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